Hanson goes shopping

The dollars are starting to change hands. Hanson announced that it has signed a contract to acquire Material Service Corp. from General Dynamics Corp. for $300 million. Completion of the acquisition, which is subject to final due diligence and regulatory approval, is anticipated to occur in the second quarter of this year. Headquartered in Chicago, Material Service is the 13th largest producer of aggregates in the United States, according to Pit & Quarry's MegaProducers list. Material Service employs more than 800 people and operates 10 crushed stone quarries and three sand and gravel quarries. The company's primary market is Illinois, including the greater metropolitan area of Chicago. Illinois is the fifth largest aggregates market in the U.S. Three of the crushed stone locations are in western Indiana. This acquisition should increase Hanson's annual aggregates volume in the U.S. by around 15% and moves Hanson ever closer to Martin Marietta Materials as the second largest aggregate producer in the U.S. Jim Kitzmiller, President of Hanson Aggregates North America, says: "This is an important acquisition for Hanson, taking us into Illinois for the first time and extending our presence in Indiana. Adding Material Service's people and assets to our group provides new and exciting opportunities for further development in the north central US area." Your comment?